Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Non-Deal Roadshow (March 2024)
22 slides from Hindustan Zinc's roadshow presentation, Mar 11, 2024
Slide 1: Schedule of Analyst/Institutional Investor Meet - Non-Deal Road Shows
HZL/2024-SECY March 11, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Plot No., C/l, G Block Dalal Street, Fort Bandra-Kurla Complex, Sandra (East), Mumbai – 400 001 Mumbai – 400 051 Kind Attn: General Manager – Department Kind Attn: He
Slide 2: Sensitivity: Internal (C3)
Sensitivity: Internal (C3) 1
Slide 3: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer This presentation is prepared by Hindustan Zinc Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of any particular person and nothing in it shall be construed as an invitation, offer, so
Slide 4: Hindustan Zinc Limited : Overview
Hindustan Zinc Limited : Overview Company Overview • A fully integrated zinc-lead-silver India’s largest & producer with five decades of 5th largest only integrated silver producer experience and expertise in mining and smelting producer of zinc, globally lead and silver • Headquartered in the miner
Slide 5: Operations Spanning Critical Areas
Operations Spanning Critical Areas Exploration Mines (Ore Reserves & Mineral Resources) (Zinc & Lead) Technology and innovation-driven mines with 25+ Location: Rajasthan (Rampura Agucha, years of mine life Sindesar Khurd, Rajpura Dariba, Zawar and \ delineation and upgradation Sustained \ Kaya
Slide 6: Extensive Operational Asset Base (1/2)
Extensive Operational Asset Base (1/2) Rampura Agucha Mine Reserves : 44.8 mt Resources : 25.2 mt Chanderiya Smelting Complex Reserve Grade : Zn 11.2%, Pb 1.3% Pyrometallurgical Lead Zinc Smelter: 105,000 tpa Zinc and FY23 Ore Production : 4.8 mtpa 90,000 tpa Lead Kayad Mine Hydrometallurgical Zinc
Slide 7: Extensive Operational Asset Base (2/2)
Extensive Operational Asset Base (2/2) Mines Smelters Mines Reserve Resource Reserve Reserve Smelters Pyrometallur Pyrometallur Hydrometallur Lead Grade Grade gical gical gical Smelter (Mt) (Mt) Zinc (%) Lead (%) Zinc Smelter Lead Smelter Zinc Smelter Rampura Agucha 44.8 25.2 11.2 1.3 (TPA) (TPA) (T
Slide 8: Performance Excellence Across Product Portfolio with a Market-leading Position
Performance Excellence Across Product Portfolio with a Market-leading Position ZINC LEAD SILVER Smelting Capacity Smelting Capacity Refining Capacity 913 ktpa 210 ktpa 800 MT Portfolio: Special high grade, high Portfolio: Lead ingots (99.99% purity) Portfolio: 30 kg bars, mini (1 kg) grade, continuo
Slide 9: Investment Case: Excellence Powering Our Journey of Milestones
Investment Case: Excellence Powering Our Journey of Milestones Portfolio of Mines with Long Life Investments Boosting Production Global Cost Leadership through Fiscal Capacities Prudence, Agility & Resilience • Enhance Ore Reserves and Mineral • Use of advanced tools and operational Resources: Innov
Slide 10: Strengthening Mineral Resource and Upgradation of Resources to Reserves
Strengthening Mineral Resource and Upgradation of Resources to Reserves Strategic focus remains on increasing the longevity of our mines to drive future growth & value Metal in Mt (net of production of 9.8 Mt in 9 years) 35.0 30.8 Metal in Ore (30.8 Mt) Silver 30.0 25.4 25.0 20.0 310.2 million ounce
Slide 11: Strong Financials, Profitability and Operating Metrics
Strong Financials, Profitability and Operating Metrics Refined Silver (T) Mined Metal (kt) Refined Metal (kt) 1,032 930 967 725-750 MT 1,017 1,062 1,075-1,100 kt 870 1,050-1,075 kt 706 714 972 211 647 917 191 610 223 214 760 556 216 780 181 197 216 163 164 776 821 756 801 839 688 715 720 597 616 FY2
Slide 12: Cost Resilience & Leadership
Cost Resilience & Leadership Sequential change in Zinc COP* ($/MT) Zinc COP* ($/MT) Q3 FY24 1,095 Q2 FY24 1,137 Q1 FY24 1,194 Q4 FY23 1,214 Q3 FY23 1,293 Q2 FY23 1,259 Q1 FY23 1,264 Q4 FY22 1,136 Q3 FY22 1,148 Q2 FY22 1,124 Q1 FY22 1,070 Key Highlights: ▪ Strong foot-hold in the of the global zinc m
Slide 13: Operational Efficiency Enhancement through Digital/Innovative Interventions
Operational Efficiency Enhancement through Digital/Innovative Interventions Advance Process Control Rajpura Dariba Mill revamp Smoke Hours Drilling ▪ To address difficulty in flotation ▪ For enhancing metal recovery, RD ▪ Additional production in process due to constantly Beneficiation plant revampi
Slide 14: Competitive Advantage
Competitive Advantage Industry leading 5 years production 2nd highest zinc R&R base globally Sustainability leader with highest rank in CAGR of c.4% in metal and silver with average grade of over 5%. 1/4th S&P sustainability assessment globally, of total global zinc R&R is with grade ESG focus with
Slide 15: Market Outlook
Market Outlook Global Steel Demand (Mnt) Indian Steel Demand (Mnt) ▪ In near to medium term (2023-2033), global zinc 1849 136 consumption is forecast to grow at an average annual rate of 1815 126 1.8% p.a whereas India’s zinc consumption is forecast to grow at 7.1% p.a. 1783 116 ▪ Globally, ten coun
Slide 16: HZL Silver Growth Chronicle
HZL Silver Growth Chronicle Growth: Silver production grew over 2x in last 10 years and 15x in 2 decades. With FY24 guidance of 725-750 MT, the production will increase by c.3% y-o-y Global Leadership: HZL is India’s only silver producer and the 5th largest producer globally. Commissioned India’s fi
Slide 17: Sustainability Goals 2025
Sustainability Goals 2025 Water Stewardship Biodiversity Climate Change Circular Economy 0.5 mn tCO2e GHG 5x water positive 3x increase in gainful Conservation emission savings company and 25% utilisation of smelting Protect and enhance from base year reduction in freshwater process waste biodiversi
Slide 18: Sustainability in Action
Sustainability in Action Roadmap to Net-Zero Move towards Green • SBTi approved HZL’s near-term & long- Transportation term net zero targets • Switching to electrical mobility- • 50% reduction in Scope 1 & 2 GHG first electric vehicle in emissions, 25% of Scope 3 emissions underground mining deploye
Slide 19: Way Forward: Paving the Way for Greater Growth By Investing in our Strategic Priorities
Way Forward: Paving the Way for Greater Growth By Investing in our Strategic Priorities • Expand mined metal capacity (currently at 1.2 Underground (UG) Production (MIC production, kt) Mtpa) and ramp up UG mines to deliver 11 yrs CAGR ~17% on it 1200 972 1017 1062 917 Expansion of • Scale smelters t
Slide 20: Way Forward: Paving the Way for Greater Growth By Investing in our Strategic Priorities
Way Forward: Paving the Way for Greater Growth By Investing in our Strategic Priorities • Scale capacities for minor metal recovery Share of VAP in Our Sales (%) • Invest in new product development, especially 21.0 20.0 20.0+ Expansion of Product alloys of zinc and lead; HZAPL to produce high 16.0 1
Slide 21: Way Forward: Paving the Way for Greater Growth By Investing in our Strategic Priorities
Way Forward: Paving the Way for Greater Growth By Investing in our Strategic Priorities Road Ahead • Commitment to audacious Sustainability Goals 2025 in place Progressing Towards a 450MW 100% USD 1 billion Sustainable Future • Efforts in GHG emissions reduction, water Green power Mechanised investm
Slide 22: THANK YOU
THANK YOU HINDUSTAN ZINC LIMITED Yashad Bhawan, Udaipur-313 004, Rajasthan T: +91 294 6604000-02 www.hzlindia.com Sensitivity: Internal (C3) 21